KUALA LUMPUR (April 22): RHB Asset Management Sdn Bhd (RHBAM) on Monday launched a wholesale fund that puts investors’ money in an actively managed exchange-traded fund (ETF) managed by JPMorgan Asset Management.

The RHB Global Equity Premium Income Fund, which is also a feeder fund, channels investors’ money into the JPMorgan Global Equity Premium Income UCITS ETF, an actively managed ETF that adopts an “outcome-oriented” strategy and invests in global equities.

Mohd Fauzi Mohd Tahir, chief investment officer of equity at RHBAM, said the fund aims to deliver investors with a 7-9% annual income distribution, which is paid out monthly. The potential higher regular income stream is possible with the active management investment approach of the underlying ETF.

The fund also aims to deliver lower volatility as compared with its peers and can benefit from value appreciation of its underlying securities. 

Mohd Fauzi believes the fund’s exposure to global equities is another factor that could capture investors’ interest.

“Investors are always looking to participate in the global equities space, with lower volatility and at the same time, offering a consistent higher income stream.

“Having identified this gap, we have been searching for better investor opportunities for our customers. We are very excited to work with our business partner, JPMorgan, to meet Malaysian investors’ demand with this unique investment strategy,” he said.

RHBAM aims to achieve RM100 million in assets under management within 12 months from the launch of the fund, added Fauzi.

Supreet Bhan, head of Southeast Asia Funds at JPMorgan Asset Management, said the firm is excited to introduce one of its market-leading active ETF strategies in a feeder fund format to Malaysian investors, in partnership with RHBAM.

“Combining equities with options overlay, this strategy aims to strike a balance between yield, capital growth and risk to meet investors’ growing demand for diversified income sources without taking on undue risk,” he said. 

RHBAM is a wholly-owned subsidiary of RHB Investment Bank Bhd.